What is the Travel Rule?
The Travel Rule is a regulatory requirement for digital asset transfers. It requires certain personal information about the sender and recipient to be shared together with the transaction. This rule applies when KDX facilitates both domestic and cross-border digital asset transfers.
What information do I need to provide for a digital asset transfer?
To comply with the Travel Rule, KDX is required to collect accurate information before or during a digital asset transfer and share it with the receiving exchange or wallet provider (VASP).
This includes:
Digital asset details
- Type of digital asset (e.g. BTC)
- Amount being transferred
- Full name
- Account number, wallet address, or transaction reference number
- Residential address or date and place of birth
- Identification number (e.g. National ID or passport number)
- Basic recipient information is required
- While KDX does not verify the recipient’s (beneficiary) name, please ensure you provide the full and accurate recipient’s (beneficiary) name. Failure to do so may result in the recipient’s (beneficiary) exchange rejecting your transfer if the name does not match their customer records.
Why does KDX check the receiving exchange or wallet provider?
Before transmitting any required information, KDX identifies and performs due diligence on the receiving exchange or wallet provider (VASP). This is done to prevent transfers to illicit or sanctioned entities and to assess whether the counterparty can adequately safeguard the confidentiality of shared information.
Why might my digital asset transfer be delayed or restricted?
A digital asset transfer may be delayed or restricted if additional verification is required to meet Travel Rule obligations. This may occur when information is incomplete, inaccurate, or when further checks on the receiving exchange or wallet provider are necessary.
As a recognized market operator regulated by the Securities Commission (SC) Malaysia, KDX (formerly known as Tokenize Malaysia) is committed to maintaining the highest standards of compliance for Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT). This includes implementing the Travel Rule as required by the authority to provide a secure trading experience for our customers.
While regulatory matters can be overwhelming, they are in place to provide a safe place for you to buy, sell, deposit, and withdraw your digital assets. At KDX, we empathize with the challenges of compliance and are dedicated to keeping our customers informed about any enforcement of the Travel Rule on our exchange. You can reach out to our Customer Support for further inquiries.
Having trouble? Contact us at support@kineticdax.zendesk.com